Frontier Capital Group Ltd. is expecting to see its profit double two years down the road, thanks to its recent Clark casino acquisition.
Last week, the Australian-listed company announced it is acquiring the Stotsenberg Hotel and Casablanca Casino in the Philippines’ Clark Freeport Zone for $26 million in shares, which will be transferred in three tranches.
Frontier Capital’s shareholders will still have to approve the deal, with a target date for completion in January 2016. Still, that hasn’t stopped the casino investor calculating the possible yield it will get in the next few years.
In a filing to the Australian Securities Exchange on Thursday, the company said it expects its profit to climb to $11.7 million by 2018—from $5 million in 2016—as a result of its “aggressive expansion plans” for the Clark casino.